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Uranium Energy Corp Reports Positive Preliminary Economic Assessment on Slick Rock Project in Colorado

April 22, 2014

NYSE MKT Equities Exchange Symbol – UEC

CORPUS CHRISTI, TX, April 22, 2014 /PRNewswire/ – Uranium Energy Corp (NYSE
MKT: UEC, the “Company” or “UEC”) is pleased to announce that the
Company has received the results of a Preliminary Economic Assessment,
summarized in the technical report “Technical Report Preliminary
Assessment Slick Rock Project Uranium/Vanadium Deposit, San Miguel
County, Southwest Colorado, USA”, dated effective April 8, 2014 (the
“PEA”), prepared in accordance with National Instrument 43-101 (“NI
43-101″), for the Slick Rock Project (the “Project”). The Company
intends to file the PEA on SEDAR on or about April 24, 2014.

PEA Highlights:

        --  The PEA shows a robust project pre- tax Internal Rate of Return
            ("IRR") of 33% and a post-tax IRR of 29% and pre-tax Net
            Present Value ("NPV"), at a discount rate of 10%, of $43.8
            million and a post-tax NPV of $31.9 million based on a uranium
            spot price of $60 per pound and a vanadium spot price of $10
            per pound.
        --  Drilling-to-date has outlined an Inferred Mineral Resource (at
            a 0.15% eU3O8 cut-off) of 2,549k tons at an estimated 0.228%
            eU3O8 grade which contains an estimated 11.6 million pounds of
            uranium oxide and 69.6 million pounds of vanadium oxide at an
            estimated 1.37% V2O5 grade.  These resources rank Slick Rock
            among the highest grade uranium and vanadium deposits in the
            US.
        --  Initial capital for the Project is estimated at $21m and
            assumes production of 100,000 tons per annum.
        --  The PEA is based on the projected sale of mined product to the
            White Mesa mill located in Blanding, Utah, and assumes
            operating costs of $67.78 per ton.
        --  Production of uranium and vanadium, estimated in the PEA,
            average 438,000 pounds and 2.6 m pounds per annum,
            respectively, for a total production of 7.4 m pounds uranium
            and 44.3 m pounds of vanadium over a 21 year life of mine.

President and CEO Amir Adnani stated, “We are very pleased to reach this
important milestone for the Slick Rock Project, which is just one of
five conventional uranium properties we have in the Colorado Plateau.
The PEA shows robust economics for the project which is capable of
delivering meaningful uranium and vanadium production over a long mine
life. Production in South Texas from our hub-and-spoke platform remains
our top priority, however, the value of our extensive pipeline of
growth projects should not be understated. This pipeline also includes
advanced stage projects in Arizona and Paraguay that are inexpensive to
maintain but can be monetized or developed further at higher uranium
prices. To this end, we have completed the majority of similar level
studies on our large Anderson project in Arizona and expect to issue a
new technical report in 90 days.”

The PEA was prepared for the Company by Douglas Beahm, PE, PG, of BRS
Inc., with contributions by Bruce Davis, FAusIMM, of BD Resource
Consulting, Inc. (BDRC) and Robert Sim, P. Geo, of Sim Geological Inc.
(SIM). The PEA is based on the current Inferred Mineral Resource
estimate for uranium (BDRC and SIM, 2012), which was first disclosed in
the technical report “Technical Report for the Slick Rock Project
Uranium/Vanadium Deposit, San Miguel County, Southwest Colorado, USA”,
effective December 2012, as described in the PEA available on SEDAR and
summarized in the chart below. The purpose of the PEA is to provide an
independent analysis of the potential economic viability of the
Inferred Mineral Resources of the Project. The technical staff of the
Company assembled an extensive amount of information as part of the
Company’s production planning for the Project. This data was verified
and used by BRS as the basis of the PEA.

The following table details the Inferred Mineral Resource:

SUMMARY OF INFERRED MINERAL RESOURCES FOR SLICK ROCK PROJECT

EFFECTIVE DATE APRIL 8, 2014

     _____________________________________________________________________
    |Cut-off Grade|Tons x 1,000|eU3O8 (%)| Contained |V2O5 (%)| Contained |
    |   eU3O8%    |            |         |U3O8 (Mlbs)|        |V2O5 (Mlbs)|
    |_____________|____________|_________|___________|________|___________|
    |      0.10   |     4,225  |   0.186 |     15.7  |   1.12 |     94.2  |
    |_____________|____________|_________|___________|________|___________|
    |      0.15   |     2,549  |   0.228 |     11.6  |   1.37 |     69.6  |
    |_____________|____________|_________|___________|________|___________|
    |      0.20   |     1,646  |   0.255 |      8.9  |   1.53 |     53.4  |
    |_____________|____________|_________|___________|________|___________|
    |      0.25   |      775   |   0.296 |      4.6  |   1.78 |     27.6  |
    |_____________|____________|_________|___________|________|___________|
    |      0.30   |      274   |   0.340 |      1.9  |   2.04 |     11.4  |
    |_____________|____________|_________|___________|________|___________|
    |      0.35   |       71   |   0.415 |      0.6  |   2.49 |      3.6  |
    |_____________|____________|_________|___________|________|___________|
    |      0.40   |       69   |   0.417 |      0.6  |   2.50 |      3.6  |
    |_____________|____________|_________|___________|________|___________|

(Base case cut-off grade of 0.15 % eU(3)O(8) is highlighted in Table 1.2)

Mineral Resource Estimate

The uranium mineral resource estimate has been generated using drill
hole sample assay results and the interpretation of a geologic model
which relates to the spatial distribution of uranium. The vanadium
mineral resource was estimated based on the estimated grades for
uranium using a 6:1 V:U ratio. Interpolation characteristics have been
defined based on the geology, drill hole spacing, and geostatistical
analysis of the data.

At the time the majority of the uranium assays available for mineral
resource estimation were collected, the common practice in mineral
exploration and development was to rely on uranium values to estimate
vanadium content based on the historic V:U ratios for each mine area.
Uranium values were determined from chemical assays or, far more
commonly, from radiometric equivalent determinations either with
downhole geophysical logging (surface exploration) or handheld
scintillometers (underground face mapping and mining). Vanadium values
were estimated based on the V:U ratios experienced during past
production in the area and confirmed by head assays at the mills.

Grade estimates have been made using ordinary kriging into a model with
a nominal block size of 50 x 50 x 10 ft (L x W x H). Statistical
evaluations result in the segregation of data according to favorable
zone domains during grade interpolation. Bulk densities have been
assigned to blocks in the model based on historic production data.

The results of the modeling process have been validated using a series
of methods. The results indicate that the resource model is an
appropriate estimation of global resources based on the underlying
database.

The resources have been classified by their proximity to sample
locations and are reported, as required by NI 43-101, according to the
CIM Definition Standards on Mineral Resources and Mineral Reserves.
Based on the current distribution of drilling, resources in the
Inferred class occur within the designated favorable areas. There are
no known factors related to environmental, permitting, legal, title,
taxation, socio-economic, marketing or political issues which could
materially affect the Inferred Mineral Resource.

Information about data verification applicable to the Inferred Resource
is available in the Technical Report for the Slick Rock Project
Uranium/Vanadium Deposit, San Miguel County, Southwest Colorado, USA,
effective December 2012, available on SEDAR, as well as in the PEA that
will be filed on SEDAR and the Company website on or about April 24,
2014.

The Company has an in-depth understanding of the geology at the
Project. The Project has been the subject of study since the 1940′s
and the subject of mine production through the early 1980′s. The
practices used during the various drilling campaigns have been
conducted in a professional manner and have adhered to accepted
industry standards. Based upon the available drilling data, published
geologic reports and mapping, the mineral resource estimation, and the
PEA, the following conclusions have been made:

        --  The base economic case in the PEA assumes production of 100,000
            tons of mineralized material per year.  For this base case,
            with a uranium price of $60 per pound and a vanadium price of
            $10 per pound, the Project would generate an estimated pre-tax
            IRR of 33% and a post-tax IRR of 29%and have an estimated
            pre-tax NPV, at a 10% discount rate of $43.8 million, and a
            post-tax NPV at a 10% discount rate of $31.9 million (constant
            dollars US), Today's spot price of uranium is $33.75/lb and
            today's price of vanadium oxide is $5.80/lb. The IRR is based
            on an estimated capital expenditure to initiate production of
            $21 million.

        --  The portion of the Inferred Mineral Resource included in the
            conceptual mine plan and the basis of the PEA has an estimated
            1,740 thousand tons, average grades of 0.212% eU3O8 and 1.27%
            V2O5, containing 7.4 million pounds of uranium oxide and 44.3
            million pounds of vanadium pentoxide.Mineral resources are not
            reserves and do not have demonstrated economic viability.

        --  The technical risks related to the Project are comparatively
            low as the mining and recovery methods are proven. The
            recommended mining methods have been employed successfully at
            the Project site in the past.

        --  The Project is located in a brownfield area that has a mining
            heritage of more than a century.  A portion of the Project area
            was deemed suitable by the United States Department of Energy
            (USDOE) for the long-term isolation of uranium mill tailings
            through an extensive Environmental Impact Statement process.
            This data is public and may assist in permitting and licensing.

        --  USDOE has recently released their Final Uranium Leasing Program
            Programmatic Environmental Impact Statement (March 2014) to
            analyze reasonably foreseeable environmental impacts as a
            result of exploration, mine development and operations, and
            reclamation of uranium mining on the 31 uranium leases USDOE
            administers, three of which are contiguous to the Project.
            USDOE's preferred alternative is to continue with the current
            program for the next 10-year period (or for another reasonable
            period).  This current environmental data is public and will
            assist in permitting and licensing of the Project.

        --  The Project is one of five UEC conventional mining properties
            within the Uravan District of the Colorado Plateau, including
            Bull Canyon, Raven, Long Park and Radium Mountain.  UEC also
            controls a significant portfolio of properties in Arizona
            including Anderson, Workman Creek, Los Cuatros, Artillery Peak
            and Dry Mountain.

The PEA discussed in this press release is preliminary in nature, and it
includes Inferred Mineral Resources that are considered too speculative
geologically to have the economic considerations applied to them that
would enable them to be categorized as mineral reserves. There is no
certainty that the Preliminary Economic Assessment will be realized.
Mineral Reserves are not estimated in the PEA.

The technical information in this news release has been prepared in
accordance with the Canadian regulatory requirements set out in NI
43-101 and was reviewed by Clyde L. Yancey, P.G., Vice
President-Exploration for the Company, a qualified person under NI
43-101.

About Uranium Energy Corp

Uranium Energy Corp is a U.S.-based uranium mining and exploration
company. The Company’s fully licensed Hobson processing facility is
central to all of its projects in South Texas, including the operating
Palangana in-situ recovery (ISR) mine, the permitted Goliad ISR project
and the development-stage Burke Hollow ISR project. Additionally, the
Company controls a pipeline of advanced-stage projects in Arizona,
Colorado and Paraguay. The Company’s operations are managed by
professionals with a recognized profile for excellence in their
industry, a profile based on many decades of hands-on experience in the
key facets of uranium exploration, development and mining.

Stock Exchange Information:

NYSE MKT: UEC

Frankfurt Stock Exchange Symbol: U6Z

WKN: AØJDRR

ISN: US916896103

Notice to U.S. Investors

The mineral resources referred to herein have been estimated in
accordance with the definition standards on mineral resources of the
Canadian Institute of Mining, Metallurgy and Petroleum referred to in
NI 43-101 and are not compliant with U.S. Securities and Exchange
Commission (the “SEC”) Industry Guide 7 guidelines. In addition,
measured mineral resources, indicated mineral resources and inferred
mineral resources, while recognized and required by Canadian
regulations, are not defined terms under SEC Industry Guide 7 and are
normally not permitted to be used in reports and registration
statements filed with the SEC. Accordingly, we have not reported them
in the United States. Investors are cautioned not to assume that any
part or all of the mineral resources in these categories will ever be
converted into mineral reserves. These terms have a great amount of
uncertainty as to their existence, and great uncertainty as to their
economic and legal feasibility. In particular, it should be noted that
mineral resources which are not mineral reserves do not have
demonstrated economic viability. It cannot be assumed that all or any
part of measured mineral resources, indicated mineral resources or
inferred mineral resources will ever be upgraded to a higher category.
In accordance with Canadian rules, estimates of inferred mineral
resources cannot form the basis of feasibility or other economic
studies. Investors are cautioned not to assume that any part of the
reported measured mineral resources, indicated mineral resources or
inferred mineral resources referred to herein are economically or
legally mineable.

Safe Harbor Statement

Except for the statements of historical fact contained herein, the
information presented in this news release constitutes “forward-looking
statements” as such term is used in applicable United States and
Canadian laws. These statements relate to analyses and other
information that are based on forecasts of future results, estimates of
amounts not yet determinable and assumptions of management. Any other
statements that express or involve discussions with respect to
predictions, expectations, beliefs, plans, projections, objectives,
assumptions or future events or performance (often, but not always,
using words or phrases such as “expects” or “does not expect”, “is
expected”, “anticipates” or “does not anticipate”, “plans, “estimates”
or “intends”, or stating that certain actions, events or results “may”,
“could”, “would”, “might” or “will” be taken, occur or be achieved) are
not statements of historical fact and should be viewed as
“forward-looking statements”. Such forward looking statements involve
known and unknown risks, uncertainties and other factors which may
cause the actual results, performance or achievements of the Company to
be materially different from any future results, performance or
achievements expressed or implied by such forward-looking statements.
Such risks and other factors include, among others, the actual results
of exploration activities, variations in the underlying assumptions
associated with the estimation or realization of mineral resources, the
availability of capital to fund programs and the resulting dilution
caused by the raising of capital through the sale of shares, accidents,
labor disputes and other risks of the mining industry including,
without limitation, those associated with the environment, delays in
obtaining governmental approvals, permits or financing or in the
completion of development or construction activities, title disputes or
claims limitations on insurance coverage. Although the Company has
attempted to identify important factors that could cause actual
actions, events or results to differ materially from those described in
forward-looking statements, there may be other factors that cause
actions, events or results not to be as anticipated, estimated or
intended. There can be no assurance that such statements will prove to
be accurate as actual results and future events could differ materially
from those anticipated in such statements. Accordingly, readers should
not place undue reliance on forward-looking statements contained in
this news release and in any document referred to in this news release.

Certain matters discussed in this news release and oral statements made
from time to time by representatives of the Company may constitute
forward-looking statements within the meaning of the Private Securities
Litigation Reform Act of 1995 and the Federal securities laws. Although
the Company believes that the expectations reflected in such
forward-looking statements are based upon reasonable assumptions, it
can give no assurance that its expectations will be achieved.
Forward-looking information is subject to certain risks, trends and
uncertainties that could cause actual results to differ materially from
those projected. Many of these factors are beyond the Company’s ability
to control or predict. Important factors that may cause actual results
to differ materially and that could impact the Company and the
statements contained in this news release can be found in the Company’s
filings with the Securities and Exchange Commission. For
forward-looking statements in this news release, the Company claims the
protection of the safe harbor for forward-looking statements contained
in the Private Securities Litigation Reform Act of 1995. The Company
assumes no obligation to update or supplement any forward-looking
statements whether as a result of new information, future events or
otherwise. This press release shall not constitute an offer to sell or
the solicitation of an offer to buy securities.

Contact Uranium Energy Corp Investor Relations at: 
Toll Free: (866) 748-1030
Fax: (361) 888-5041 
E-mail: info@uraniumenergy.com

SOURCE Uranium Energy Corp


Source: PR Newswire



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